Tóm tắt Luận án Evaluating the impacts of social capital to activities of commercial banks in Ho Chi Minh city

Nội dung tài liệu: Tóm tắt Luận án Evaluating the impacts of social capital to activities of commercial banks in Ho Chi Minh city

1. MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY VU CAM NHUNG EVALUATING THE IMPACTS OF SOCIAL CAPITAL TO ACTIVITIES OF COMMERCIAL BANKS IN HO CHI MINH CITY SUMMARY OF DOCTORAL THESIS Major: Finance - Banking Code: 9.34.02.01 Academic advisor: Assoc. Prof. Dr. Nguyen Thi Nhung Dr. Huynh Thanh Dien HO CHI MINH CITY - 2018
2. 1 CHAPTER 1: INTRODUCTION 1.1 The urgency of the research topic The activities of business in general and commercial banks in particular are dominated by all social relationships. In the process of its operation, banks are able to link well with customers, partners, projects and programs, the mobilization of capital, loans, investment ... is also more convenient. Beside the positive side, the relationships also show the negative side. In the last period, the phenomenon of mutual acquisition between banks, take advantage of relationships with officials to serve the interests of the individual group, causing market manipulation and psychological insecurity for market participants (Nguyen Duc Chien 2013). Recent economic cases involving bank leaders have caused thousands of billion loss to the economy, partly due to social ties, including relationship of bank leaders. At the same time, there are still phenomena of internal collusion for funds, fake record for savings, loans... causing loss of reputation for banks and affecting to the banks ‘s development. In particular, fraudulent lending in developing economies such as Vietnam is quite high, influence the results of the bank deeply (Leonard Onyiriuba 2016). After the crisis in 2007- 2009, confidence in the financial services industry has been severely diminished (Benamati et al. 2010). Trust is an important foundation for the bank's sustainable development. Faith is also the basic core to building and developing a network of relationships (social capital) (Dasgupta 2002; Koniordos 2005 quoted in Crystal Holmes Zamanian & Lisa Åstrửm 2014). The study of social capital for the banking sector in the context of low credibility, such as the banking industry (one of the least reliable with 49% compare with technology, or electronic production with 70-73% in the world ranking (Edelman Trust Barometer 2013) is essential and this research is also potential to clarify social capital for the financial services industry and contribute to the current context, when the faith is affected after the crisis (Maskell 2000). Social relationships are both positive and negative. Especially, last time the negative in the banking sector is a big problem for the society, so the banks themselves and the government need a theoretical framework to realize the impact of these relationships on the
3. 2 bank's operations as well as solutions to promote positive effects and limit negative effects from these social relationships. This helps commercial banks to effectively use these relationships in their business operations. The relationship between social capital in the banking sector, there have been studies in the world and in Vietnam, such as Xie Wenjing (2013; Crystal Holmes Zamanian and Lisa Åstrửm (2014); Heru Sulistyo and the authors (2015); Justin Yiqiang & the authors (2017); Huynh Thanh Đien (2011). Most of the research is qualitative and only deals with some aspects of the relationship between social capital and banking, and there is no study evaluating the relationship between social capital and the activities of Bank. That's the space for the researcher. Starting from the above mentioned, the author has chosen to study the topic of "Evaluating the impact of social capital to the activities of commercial banks in Ho Chi Minh City". 1.2. Research objectives and questions General goal: Assess the impact of social capital on business activities of commercial banks in order to exploit the positive role and limit the negative impact of social capital on business activities of commercial banks in Ho Chi Minh city Detail goal: - Discover and measure the composition of the bank's social capital and business activities of Vietnamese commercial banks. - Accreditation of the scale and model testing about banks ‘s social capital affect to the activities of commercial banks in Vietnam, typical case: commercial banks in Ho Chi Minh City. - Suggesting policy to help commercial banks in Ho Chi Minh City improve their performance through the use of social capital. At the same time, suggest policy to help policymakers and government support Vietnamese commercial banks develop positive forms of social linkages and limit the form of negative social linkages. Research question:
4. 3 To achieve the above objectives, the topic should answer the following research questions: - How are the social capital of the bank and the activities of the commercial banks recognized and measured? - How is the model of research on social capital affecting the operation of commercial banks built in Vietnam? - What are the policy implications of improving the performance of commercial banks through the use of social capital? 1.3. Research subject, scope and research method Research subject: The research is to study the impact of social capital on the activities of commercial banks in Ho Chi Minh City. The surveyed subjects are leaders (directors/deputy directors of branches) of commercial banks in Ho Chi Minh City. Scope: The study is limited to commercial banks operating in Ho Chi Minh City between June 2015 and December 2016. Research method: To achieve the research objectives and answer the research questions posed by the topic, the thesis using qualitative and quantitative methods will be presented in chapter 3. 1.4 The main contribution of the thesis The scientific contributions: - The first contribution of the thesis was to build up a full social capital scale in all three aspects of the internal, external networks and the bank leadership on the basis of theoretical and qualitative research, private features of Vietnam banking. - The research identified the basic groups of commercial banks as capital mobilization, using capital and providing service activities. The scale of commercial banks' activities has been tested for credibility in the case of Vietnamese commercial banks, ensuring the value and reliability of their assets so that they can be inherited for related research in Vietnam.
5. 4 - The research results show the direct and indirect effects of social capital on the groups operating in commercial banks, thus confirming that social capital is a resource that banks need to plan for its business strategy is to be able to exploit and use effectively in the business process of the bank. The results of the model test for the typical case of Ho Chi Minh City have contributed to the theoretical as well as the scientific basis, contributing to the foundation of further research about the relationship between social capital and business activities is not only in the banking industry but also in other economic sectors. Practical contributions - The thesis has built and tested the social capital scale on all three aspects include of the inside, out side and the bank leadership, which helps the bank to identify the framework for creating, using, development and assessment of social capital in the bank. Banks will then devise strategies to exploit, develop and use social capital to promote business activities. - The dissertation has developed and tested the scale of commercial banks' business groups, while pointing out the link between all activities through out the theoretical and practical accreditation activities in Ho Chi Minh City. This will help banks to evaluate more comprehensive operational groups. - The thesis also shows the positive and negative effects of social capital in the banking sector. This will help state management agencies at all levels to recognize the importance and motivation of this resource to timely formulate policies to promote positive forms of social cohesion. Limited form of negative social capital in the banking sector of Vietnam. - The results of the thesis also support the association of Ho Chi Minh City Bank and the Vietnam Bankers Association in recognizing the importance of social capital as well as creating value from the affiliate networks. Members of the association can exploit the benefits of these networks for the business process. 1.5 The organization of the study Chapter 1: Introdution Chapter 2: Theoretical foundation and analytical framework for the relationship between social capital and commercial banking activities
6. 5 Chapter 3: Research method Chapter 4: Accreditation modeling research and discussion. Chapter 5: Conclusions and recommendations.
7. 6 CHAPTER 2: THEORETICAL AND ANALYSIS FRAMEWORK THE RELATIONSHIP BETWEEN SOCIAL CAPITAL AND COMMERCIAL BANKS’ ACTIVITIES 2.1 SUMMARY OF SOCIAL CAPITAL AND SOCIAL CAPITAL IN BANKING 2.1.1 Social capital concept The concept of social capital was first mentioned in 1916, by Lyda Judson Hanifan, an American educator. He uses the notion of social capital to refer to friendship, mutual understanding, and interaction between individuals or families. According to Bourdieu.P (1986), social capital is the resource that exists in relationships between individuals or organizations (collectively referred to as the subject), thereby benefiting all stakeholders Beneficial in mobilizing resources. Similarly, the views of Nahapiet & Ghosal (1998), the authors argue that social capital is the resource that exists within the social networks of the organization or individual (collectively referred to as the subject). This social network helps social stakeholders to mobilize more resources. According to Aslaninan (2011), social capital is the value created when individuals join together in a group or network, a social network where resources and information are invested. In summary, it is possible to understand that social capital is the resource of an individual or group or organization (collectively referred to as the subject) formed and developed on the basis of interrelated networks of mutual trust each other (quality relations networks). 2.1.2 Previous studies related to the topic: Xie Wenjing (2013), in his thesis exploring the relationship between social capital and banking risk. The empirical results show that banking risk is lower in countries with higher social capital, mean in areas with high social capital, banks are far from being at risk of bankruptcy. Crystal Holmes Zamanian and Lisa Åstrửm (2014) analyze the social capital investment of banks. Research also shows that the benefits of building and nurturing social networks (or social capital) are important to banks. The study also shows that banks need to
8. 7 invest more deeply in relationships and provide technology to help banks build relationships with partners. In the study by Heru Sulistyo et al (2015), examined the role of social capital in the loyalty of Islamic banking customers in Central Java. The results show that social capital has a significant and positive impact on customer loyalty to the bank. Justin Yiqiang et al (2017), in a study of the relationship between social capital and bank stability, the authors point out that banks in higher social capital areas are less likely to fail and face to less financial problems during the 2007-2010 crisis than banks in low social capital areas. Most of the research works are qualitative and handle only some aspects of the relationship between social capital and economic development, as well as the banking sector. Huynh Thanh Dien (2011) in the thesis analyzing the contribution of social capital to Vietnam’ real estate companies in Ho Chi Minh City. The research has built up the scale of social capital is more complete when mentioned to all three aspects of internal, external and business leaders network. Research results also show the direct and indirect contributions of social capital to the operating groups of the real estate business. The results of this study will suggest that the authors study the impact of social capital on the banking sector. 2.1.3 Social capital in banks 2.1.3.1 The concept of social capital in banks Social capital in banks is the sum of the resources of an individual, group, or organization that exists in relationships that link, share, and trust each other in accordance with accepted social norms. 2.1.3.2 The meaning of social capital in banks - Social capital reduces the cost of information, transaction costs and monitoring costs - Social capital contributes to reducing financial costs, credit costs - Social capital helps reduce loan losses - Social capital increases the supply of credit - Social capital encourages customers to use the bank’ products and services.
9. 8 2.1.3.2 Character of social capital in the operation of commercial banks -Ttwo-sided (positive and negative) - Profitability - Replacement / addition of other capital types - Cohesiveness - Bridging - Accumulated over time 2.1.4 The basic component of social capital in the bank 2.1.4.1 Social capital of bank leaders Social capital of the bank leaders is mentioned as the network and the quality of relationships of bank leaders. The author Tushman & O'Reilly III (1997), pointed out that a network of leaders including relatives, friends, business partners, colleagues, press agencies, and officials members of the state management agencies, research institutions, clubs. 2.1.4.2 External social capital of the bank External social capital of the bank is referred to as the network and the quality of external relationships of the bank. Kaasa's (2007) study, pointed out that external social capital includes relationships with friends, colleagues, relatives and neighbors. Landry et al. (2000); Jansen et al. (2011) and Yang et al. (2011), in their studies, have identified components of a horizontal corporate external network of customers, investors, corporations, consulting firms, clubs, competitors in the same industry; and vertically composed of parent companies - children in the same corporation and government at all levels. Joanna Wyrwa (2014) mentions social capital outside the enterprise as the quality of external corporate networks associated with its activities (involving stakeholders such as customers, suppliers , Business Partners); environment (institutions, competitors, government officials, media); and the market (current customers, prospects, clubs) 2.1.4.3 Internal social capital of the bank Internal social capital of the bank is referred to as the network and the quality of relationships inside the bank.
10. 9 Authors Cheng & colleagues (2006), Goyal & Akhilesh (2007), Nisbet (2007), and Schenkel & Garrison (2009) in their studies have shown that the horizontal is the quality of relationships between employees and functional departments; and vertically is the quality of the relationship between the upper level individual and the lower level individual, between the superior functional department and the lower level functional unit. 2.2 BASIC ACTIVITIES OF COMMERCIAL BANKS Activities of commercial banks include: (1) capital activities: equity, mobilized capital, loans, other capital; (2) using capital activities: fixed asset acquisition, reserving, credit granting, investment; (3) providing service activities: treasury services, payment services, collection and payment, safes, financial consultancy, investment advisory, securities brokerage, insurance, foreign currency trading. General understanding of the basic operation of commercial banks is through the implementation of professional operations capital resources, operations using the capital and professional services to maximize profits. 2.3 ANALYTICAL FRAMEWORK OF RESEARCH From the theoretical relationship, in chapter 2, the thesis explored the framework for analyzing the relationship between social capital and commercial banking activities.